Compensation consultants and CEO pay

Rezaul Kabir and Marizah Minhat

Research in International Business and Finance, 2014, vol. 32, issue C, 172-189

Abstract: The study examines the practice of employing multiple compensation consultants. Examining data of a sample of UK companies over the period 2003–2006 we find that CEOs receive higher equity-based pay when firms employ more than one compensation consultant. An increase in the number of compensation consultants is also associated with an increase in CEO equity-based pay, whereas no decline in CEO pay takes place when firms reduce the number of pay consultants. We also observe that the market shares of compensation consultant are positively related to CEO equity-based pay.

Keywords: Executive compensation; CEO pay; Compensation consultant; Corporate governance (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:32:y:2014:i:c:p:172-189

DOI: 10.1016/j.ribaf.2014.05.003

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